All spends his income of s64 on kerosene (x) and food (y) each week. The price of food is se per unit. The price of kerosene is s4iter at a government-run store and he can purchase up to 8 iters there. On the market, kerosene costs s8/liter. His utility function is Cobb-Douglas: u(x, y) y, How much kerosene and food does he buy given his budget constraint? kerosene 5 food x unit(s) Suemit Anr

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Ali spends his income of $64 on kerosene (x) and food (y) each week. The price of food is $8 per unit. The price of kerosene is $4/liter at a government-run store and he can purchase up to 8 liters there. On the market, kerosene costs $8/liter. His utility function is Cobb-Douglas: u(x, y) = x5y3. How much kerosene and food does he buy given his budget constraint?
kerosene
5
3
]× _unit(s)
food
Submit AnsN
giageםוםוינלו םהיווינגב3d 45כההביכניכו יכויכיהיכיכניבויכימוינרuב 5ה בההםיכ יבוניכררה נתמ'נלau םיכוימיכויכויכ בתח4C#aצפוסעישמומא נמ !עינהינבא ה3 45 כ ה הביכיכר תהביכר1c-
Transcribed Image Text:Ali spends his income of $64 on kerosene (x) and food (y) each week. The price of food is $8 per unit. The price of kerosene is $4/liter at a government-run store and he can purchase up to 8 liters there. On the market, kerosene costs $8/liter. His utility function is Cobb-Douglas: u(x, y) = x5y3. How much kerosene and food does he buy given his budget constraint? kerosene 5 3 ]× _unit(s) food Submit AnsN giageםוםוינלו םהיווינגב3d 45כההביכניכו יכויכיהיכיכניבויכימוינרuב 5ה בההםיכ יבוניכררה נתמ'נלau םיכוימיכויכויכ בתח4C#aצפוסעישמומא נמ !עינהינבא ה3 45 כ ה הביכיכר תהביכר1c-
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